Bosses are being urged to sign up to a new scheme which would allow their staff to access financial loans with interest rates starting at 4.9 per cent.

Lincoln Money, the not-for-profit, ethical finance organisation, has launched a campaign to encourage local employers to join its payroll scheme.

The scheme is designed to help local people escape the huge interest loans from high cost lenders such as Wonga, Satsuma and Provident. It has been launched in response to the fact that employed people now make up the majority of those applying to Lincoln Money for loans.

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CEO Rob Shearing said: "Lincoln Money's payroll deduction loans mean employees can have loans of up to £25,000 for an interest rate from only 4.9 per cent, which is an excellent rate. In addition, our Employee savings accounts are paying dividends that currently beat many banks' savings rates, too.

"We are now targeting the private sector employers as they will benefit from their staff having better financial wellbeing. Employed people now make up around two thirds of Lincoln Money's customers.

"By helping staff stay away from Wonga, Cash Converters, Brighthouse and the like, people can keep more of their money within the family. Research clearly shows the benefits of this on people's wellbeing and less money going down the Wonga drain means more money being spent in local businesses, shops, bars, etc. This is good for everyone in the Lincoln region.

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"The fact that Lincoln Money is proving more popular with employed people has prompted us to launch this scheme where they can get even cheaper loans via their employer. We would encourage every company that takes its staff's financial wellbeing seriously to talk to us about signing up.

"We are keen to sign up more responsible employers who want their staff to escape high cost loans"

Those who take a loan would see their repayments made directly from their pay packets.

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Lincoln Money is supported by a group of local organisations including trade unions. Its loans are far less expensive than high cost lenders and are designed to help people get their finances back on track and get back into mainstream banking.

It is authorised and regulated by the Financial Conduct Authority, registration number FRN 656338.